The Employees' Provident Fund Organisation (EPFO) has introduced a one-time Amnesty Scheme 2026, providing a six-month window for establishments to regularise their exempted Provident Fund (PF) trusts. This initiative follows recent changes in the Finance Act 2026, which now mandate that recognition under the Income Tax Act is contingent upon obtaining a formal exemption under Section 17 of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The scheme, which opened on June 29, 2026, aims to bring internal employer-managed trusts into a unified statutory framework.
Exempted PF trusts are employer-managed schemes where companies handle provident fund contributions internally rather than depositing them directly with the EPFO. While these trusts have operated under Income Tax recognition, many lack a formal exemption notification from the central or state government. The new amnesty program allows these entities to secure retrospective regularisation, effectively clearing historical compliance gaps. By doing so, the government intends to ensure that all such trusts operate under consistent oversight and legal standards.
Eligible establishments can apply through their regional EPFO offices. The scheme offers relief by waiving certain compliance requirements and withdrawing pending assessments for dues and damages under specific conditions. To qualify, trusts must demonstrate that they have provided contributions and interest at rates equal to or better than statutory EPFO standards. This move is expected to provide greater legal certainty for both employers and the employees whose retirement savings are managed by these private trusts.
As the six-month deadline approaches, officials anticipate a significant volume of applications from companies seeking to align with the revised regulatory requirements. This transition is part of a broader effort to modernize India's social security administration under the Code on Social Security, 2020. For the general public, the scheme represents a push toward more transparent and legally compliant management of retirement funds across the country.